38 ) In a defined-benefit plan , the process of funding refers to
A . making the periodic contributions to a funding agency to ensure that funds are available to meet retirees ‟ claims .
B . determining the accumulated benefit obligation . C . determining the projected benefit obligation .
D . determining the amount that might be reported for pension expense .
39 ) In a defined-contribution plan , a formula is used that
A . requires an employer to contribute a certain sum each period based on the formula .
B . ensures that pension expense and the cash funding amount will be different .
C . defines the benefits that the employee will receive at the time of retirement .
D . ensures that employers are at risk to make sure funds are available at retirement .
40 ) The accumulated benefit obligation measures
A . an estimated total benefit at retirement and then computes the level cost that will be sufficient , together with interest expected to accumulate at the assumed rate , to provide the total benefits at retirement .
B . the pension obligation on the basis of the plan formula applied to years of service to date and based on future salary levels .
C . the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels .